This is Why You've NEVER Found A PROFITABLE TRADING System

are you still struggling to find a reliable system with an edge you can trust perhaps you're fed up with systems that don't live up to the promises and end in nothing more than draw down in your account well hopefully in this video I can show you how to get a system that actually works and makes money for you welcome back everyone this is Lesson Four in the high performance trading series and I hope you enjoy the lesson so far in this video we're going to explore finding a system you can trust but we're going to

start with a game and these are the rules we're going to toss a coin and every time it comes up tals you lose $10 but every time it comes up heads you win $30 and we're going to keep doing that on repeat would you play that game of course you would it's a license to print money and you would want to spend that coin again and again as often as possible for as long as possible right and you wouldn't care that you'll lose $10 for every taals because you're making $30 for every heads okay what

we've just proved there is number one you're not afraid of losses number two you wouldn't need any discipline to stick to the rules of the game far from it you would probably be excited and enthusiastic to play now trading is very similar to that ging profitable trading systems have some kind of edge whereby you win more money then you lose so why can't you stick to the trading system with the same ease you could stick to the coin TOS ging well ultimately it comes down to the fact that you don't trust the trading system and

that's what we're going to get to the bottom of let's quickly look at the symptoms you experience as a consequence of your mistrust of a system which I should stress is often subconscious well it starts with hesitating to enter a trade when you get a signal which of course leads to under trading which is something we talked about in the previous lesson but under trading leads to poor results because what an evitably happens is you take a couple of losses and you begin to have doubts so you stay out of the next trade which of

course would have been a winner so you pluck up the courage and you take the next signal and that loses so you don't hesitate and you miss the next one which would have been a winner so rather than taking every trade and allowing your Edge to play out you've randomly selected some but not others and that has a very negative impact on your results which then fuels and adds to your mistrust of the system the frustration you're now feeling makes you much more prone to mistakes like taking profit early or moving stops all of which

makes your results even worse which leads you to distrust the system even more until finally you convinced the system is junk and you go looking for another one a better one and the cycle repeats jumping from one system to another or system hopping is the one thing all struggling Traders have in common it's a universal problem but why would you distrust the system in the first place three main reasons the first reason is it's very likely you've been stung at least once in the past when we knew to trade in we are inexperienced and we

are a bit naive so it's easy to fall victim to some stammer telling us that if we just copy a system we can make $500 every day with no effort once we realize that's not true we're a bit wearier and more suspicious and quite rightly so the vast majority of system sellers are total con artists selling junk but the problem is we tend to see what we expect to see so even if you find a legitimate system from a honest vendor or just one from on the forums by going into it with some skepticism and

suspicion you are going to be on the lookout for any faults and you'll be much quicker and more likely to override the system at a first sign of doubt and of course that leads to mistakes which harms the results which confirms your suspicions and the vicious cycle repeats itself a second reason you distrust your system is the most common the most harmful and the least talked about or understood it's the lack of understanding of probabilities trade in a system is like running a casino casinos have no idea which individual spin of the wheel or roll

of the dice is going to result in a profit or loss but they do know that but as long as they keep playing the game they Ed will balance out and they'll make money in the long run but we as Traders find it near impossible to think like that because we don't understand probabilities even something as simple as a coin flip we all know the odds on a single coin toss is 50/50 it has an equal chance of landing on heads or tails but as I showed in the previous lesson when it comes to understanding

the odds beyond the single turn most people are clueless if you toss the coin 10 times in a row most people instinctively think that the odds are 50/50 of getting exactly five heads and five tales but the odds are less than 25% so if someone plays that game that I proposed at the start of a video and they expect to win every other turn or at least five out of the next 10 turns they're going to think un using a trick coin when they lose eight out of the first H spins the results won't match

their expectations but getting a string of losses in a series of coin flips is a guaranteed consequence of random distribution and if we're confused with the odds of something as simple as a coin flip you can understand the problems with the trading system where most people don't even know what their Edge is to start with we may have a system with a 50% win rate where each win is three times bigger than a loss in which case we've got a license to print money but even so with those odds we are guaranteed at some point

to get 10 losses in a row simply from random distribution and it may be the first 10 trade we take now funnily enough we're also guaranteed to get a string of 10 wins in a row at some point purely due to random distribution also and you can be absolutely certain that after 10 wins in a row we would all If we're honest attribute it to our amazing skill whereas after a string of losses we would blame the system and be more likely to abandon it the truth is both results are nothing more than a factor

of how probabilities work but if we're anxiously waiting for or expecting to see our Edge play out in the short term we're going to incorrectly attribute a small cluster of random losses to system failure now the next four lessons in the series will help you understand how you bring deals with probability so rest assured there is help on the horizon the third reason for distrusting your system is thanks to treating systems as though they are decision makers all systems and the tools and indicators they employ are merely there to assist you in making a decision

but ultimately the final decision must be made by you imagine you're the CEO of a large organization you may have advisers board members and experts to advise and assist but even if they are all in agreement your job as the person in overall charge is to make your own assessment and make the final decision if that decision turns out to be wrong it's easy to blame the advice you received but that's what people do with systems trading systems are like advisors but they only advise on what is likely to happen not what will happen they

advise what is likely to be the best course of action not what will be the best course of action understanding this subtle difference defines whether you are likely to be taken responsibility for your decisions and getting better at them or absolving yourself of responsibility and blaming everything on the system and therefore never improving bet trading and with that said it's time to face an uncomfortable truth system hopping abandoning one system in search of a better one is a universal problem that affects every single Trader at some point it understandable for brand new traders who in

their naivity get sucked into Advocates that promise the Earth but even experienced traders who eventually find a reputable system with an edge and a track record are still unable to stick to it and the uncomfortable truth is any high performance activity which trading is it's easier to blame or change the tools rather than change how we work the one thing that separates Elite professionals from amateurs in all activities not just trading is that professionals know that the tools of the job are only a small small part of the key to success the best fry and

pan in the world want to you into the next Gordon Ramsey you can fill your kitchen with the most professional knives and cooking pots but they won't improve your ability to select the best ingredients to make fantastic meals your trading system is just a tool in many ways trading systems are like weight loss diets a diet is just a set of rules and there are literally thousands of them and they all work they all have an edge and that edge is you consume fewer calories than you burn that is mathematically guaranteed to give you results

some diets are obviously better than others and they can vary greatly in their methodology but you can't argue with the mathematical Edge from any of them they all work if you follow the rules however we all know someone who may or may not be ourselves who has gone on a diet failed to lose weight and said that diet didn't work for me the diet is just a set of rules it's not going to ensure you stick to it day in and day out in order to do that we have to learn how we form judgments

and make decisions and how those decisions influence our actions we need to understand what's going on when we decide to temporarily override the diet and cheat and why do we feel guilty after we've done that and how can we have better control over the processes between decisions and actions without knowing how you make decisions and their relationship with actions it's easy to assume the reason you didn't have success losing weight is because the diet didn't work the similarity between diet and trading systems is very strong there are thousands of profitable trading systems with mathematically robust

edges finding a system that generates profits is not difficult but your success or failure with a trading system really comes down to how you make decisions and how you act on those decisions a good Trader will make money with any system someone who can't trade won't make money ever even if they handed the Holy Grail on a silver platter the trader makes money not the system that's why I have such success with my clients I teach them to trade I don't teach them to copy a system when I finished working with them we have designed

the system uniquely tilled to suit their personality but more importantly we both know that they can trade and will always be able to make money no matter what under any conditions with any system it's a very different approach from most people just desperately looking for the latest and greatest indicator now part two of this course the next four lessons are going to dive deep into decision systems and how you make decisions we will cover how your different decision systems are activated in different scenarios your defensive and intuitive decision mechanisms how your decision- making systems have

developed over the years and why they're so effective under certain situations and finally I'll show you how to apply various tools and strategies to help you improve your decision-making processes whilst trading so there's lots to look forward to if you've enjoyed this lesson please like comment and share and if you're not a subscriber please consider becoming one you might even want to sign up to my newsletter thanks for watching I'll see you next time